tv Myths Lies and Complete Stupidity FOX News March 10, 2013 8:00pm-9:00pm PDT
struggling. >> harris: right. >> a mediocre team and now won eight of the last 11 games and play the bulls, good in the eastern conference, and beat them by 11 today. dwight howard playing well and kobe playing well and laker nation revitalized and the first time they've been in the playoff hunt in months and suddenly reason to be excited. lakers too good of a team. >> harris: you call me a kill-joy and i'm fair and balanced. the first time they've been above 500, that's a comeback? >> harris, come on, hot now, getting towards march and april. >> harris: oh, man. the lakers are the team to watch in the west. >> harris: i see you're auditioning now, the br brawl, this was a mess. >> a brawl between canada and mexico, no suspensions and-- this is -- no suspensions, mexico is eliminated if canada goes on we're not going to
suspend the players, turns out the united states beat canada and eliminated them, both the teams in the brawl are eliminated and u.s. advances in that decision. >> harris: you've got the job. you're here every sunday, we're lucky. >> thank you. >> harris: let's do fox fast forward, a look ahead at some the big stories this week, possibly as early as tomorrow, two of the most divisive gun control proposals from colorado democrats expanded background check requirements, and limits on ammunition magazines, those will face final votes in the state senate in colorado after marathon debates last week, both proposals passed the state house. on tuesday house budget committee chairman paul ryan, we told you earlier this hour, is expect today release his new budget plan. among the billions of dollars worth of anticipated cuts, is a full repeal of obamacare. also, on tuesday, the roman catholic church began the process of choosing the next pope when cardinals will officially begin the conclave inside the famous sistene
chapel and they will send out the smoke and we'll know who it is. that's how fox reports on sunday, march 10th, 2013. i'm harris falkner, good night. >> john: tonight, we expose myths and lies and stupidity. you're a bully. politicians tell us what food we can eat. what difference is it of yours what i put in my body. >> without a little fat and sugar, what would life be? >> we're told fracking will poison our water. >> wells are ruined and live stock is dying. >> ♪ don't frack my mother ♪ >> fracking is good. >> it's an amazing story. >> john: also, because stupid people do this. >> and these people lose their jobs? >> well, we're less safe because of you awful people. >> we deliver, we deliver. >> john: should government deliver the mail? should it it build speedy
trains? we look for the answers at the seat of power. washington, where they often don't want our camera around. >> we can't just take a picture of the beautiful atrium? >> no. >> john: but there's so much money here, life is good. >> once people come to d.c. they never leave. >> john: and now, from the fox news headquarters in new york, john stossel. >> john: we start with myth number 7, because americans are so fat, it's government's job to help us eat better. >> changing old habits is never easy. >> john: no, it's not. so, the first lady says to change behavior. >> it's going to take government doing its part. >> john: if michelle obama wants to inspire us by exercising on the white house lawn, that's great, but government doing its part usually means force. >> this is nothing to do with banning your ability to buy as much sugary drinks you want, simply the size of the cup that can be used. >> john: in my hometown, the player went to war against big cups of soda and made cups
this size illegal. >> this is the single biggest step any city has ever taken to curb obesity. >> john: please, i can still buy two of these, that's 32 ounces or go a supermarket, and buy one of these monsters. how does this curb obesity? >> thank you. >> john: my mayor's prouds proud he's forced every restaurant to post calorie counts. >> today both reforms are recognized as national models. >> john: sadly, that's true. under obamacare, all big chains will have to post calorie counts even though they don't work. a study by professors at new york university yale tracked customers at macdonald and burger king, and kentucky fried chicken. half noticed the counts and some said it influenced ordering, but when researchers checked receipts, they found people ordered more calories. the author of "the food police", studied that, too. >> what we find is those
labels really don't change behavior at all. what you're doing is asking companies to undertake a cost that has essentially no benefits. it's a sign of a government that's willing to step into your daily food choices even though they know it won't work for the sole reason of creating a symbol. what kind of government is that. >> john: an intrusive one. in my state, banning foods and required that the signs are posted is felix ortiz. it doesn't work, they tested they eat more. >> i disagree with that. >> john: now he's going after salt. >> ban the salt in the restaurants in the state of new york. >> john: too much salt is bad for people, people with hypertension and some other problems, but there's no evidence that it's harmful to most of us. in fact-- >> some studies show that reduced salt intake among some segments of the population actually increased the chances of death. >> john: because you shouldn't have salt, i can't have salt? >> it's based on statistics coming out from c.d.c.
>> john: for some people. maybe 20% of the people. that's not everybody. >> all the cheeseburgers across the pond, denmark the first country in the world to impose a fat tax. >> john: some members of the food police say consumers should pay more to buy less healthy food. denmark indicated a fat tax and go to the supermarket and buy a food that has above a certain level of fat, they charge you extra. all right, do we feel good about this? >> the fat tax passed the danish parliament. and they switched to cheaper food that was as unhealthy or crossed the border to shop within neighboring countries and within one year they've repealed. and so far they haven't mentioned it. they've repealed it. >> they repeal it, i think they're making a big mistake. >> john: well, they tried it for a year, they tried your dumb idea for a year and said, oh, my goodness, bad idea.
>> i believe it's a great idea. >> john: other great ideas from the food police are taxes on candy or fast food. how do you-- >> you can go to mcdonald's and order a salad or a big mac. >> boats are fast foods and you can bet the lobbyists will be on the table making the rules what fast food is. >> john: illinois had a similar problem with candy tax. what exactly is candy? the bureaucrats decided this hershey bar is taxable candy, but this isn't because it contains flour. store clerks don't know what to charge. >> in ours we have flour, sugar, eggs, salt. >> john: katie's dessert won an award at the food network. don't you think you're poisoning people? >> no. >> john: you're making everybody fat. >> no. without a little fat and sugar, what would life be? >> we asked her to make donuts without the so-called bad stuff. >> the healthy version i made today has no sugar, no salt, very little fat, it's not fried, it's baked showing you
how different dessert can be without the good stuff. >> john: the good stuff. egg whites, that's good. >> egg whites are good, but it's not like egg yolks. >> john: will people mind the difference? let's try a taste test. we've got a healthy donut and a regular donut. almost everyone liked the regular donut. >> that's awesome. >> john: how about the other one. >> not, not good. >> john: not so good. >> it doesn't taste like anything. >> the sugar. >> john: i wanted to like the healthy donut. it's like eating bread. not what i'm looking for in a donut. >> john: some people liked the healthier version. >> that's baked. >> it's good for a baked donut, it's very good. >> john: taste is subjective so it's gooe have choices. >> and we're trying to give you an option where you can make better choices. >> john: where do you get off saying you're giving more choices? you're banning things, you're giving us less choices. >> let me just say, you're absolutely right, and trying the ban the stuff that is not good for the consumer. >> john: you're a bully.
>> i've been called worse. >> john: what business is it of yours what i put in my own body, isn't that party of freedom? >> you can have the freedom, but when it comes down to the health care costs then we need to tackle them, and if we're not living healthy life style, government will be blamed for not doing the right thing. >> john: because government is responsible, because we have a socialized health care system, you get to take away my freedom? >> i think what i'm trying to do is to help you to have a the better life. >> john: you're like a cancer, you're spreading the bad thing that could costs a lot of money and not doing good. >> i'm a good cancer, providing good advice for our country. >> john: a good cancer, brings us to myth number six, obamacare is good for business. democrats say it is. >> the fact is, it's very good for small business, it's incredibly good for small
business. >> they are why we committed ourselves to this cause. >> the white house specifically says on its website, business will not suffer under health care reform. >> john: obamacare is good for business? >> you can't be wealthy unless you're healthy. you must remember congressman grayson's support. >> republican remember the republican plan, don't get sick. if you do, die quickly. >> john: i was surprised grayson used to be a businessman and helped to create a company, idt. an unusual politician, having really created something, created wealth, run idt. i would think you would see the burden all these rules put on business. >> point to one rule that actually has had a dramatic impact on job creation or on small business? and. >> john: it's not just one rule, it's the pile of rules. here is obamacare, and this is just the start because many pages say, the secretary shall
produce more regulation. >> well, put together that big pile of rules. which are the bad ones. >> john: how about the tax on medical devices. a bunch of democrats now object to this. >> listen, we have to pay for it somehow. >> john: obamacare imposes a steep tax on companies that make medical devices. things like pacemakers, artificial limbs, digital thermometers, this can be a profitable business, but one that saves lives and the new tax may mean they'll save fewer lives and now, even some senate democrats want that part of obamacare killed. don't we want more medical device sns. >> when you pass a law that costs something you have to come up with the money for it. >> john: obamacare forces more business owners to pay more for workers' health care. lauren goodrich runs restaurants in maine and new hampshire. >> thanks for choosing subway today. he hires lots of kids and offers health insurance for
most full-time workers who particular stick around. you have 20 subway shops. how many employees? >> 180 employees. >> john: obamacare, the point is to get your employees better health care. >> i think it's a noble cause, but i can't provide for every single need of every single employee. in the low margin, retail restaurant business, this bill is devastating. >> john: goodrich says his profit margin's already smaller because he's had to pay specialists to try to explain obamacare rules. >> accountants and insurance agents and lawyers to try to figure out how i'm going to comply with the bill and they still can't give me the answer. >> what can i get for you? >> obamacare says he must pay for insurance and will slash profits. >> i can hear the people listening say, so what? he's a rich guy, got 20 stores, make less profit. >> well, you could say that, but you have to have a profit to be able to expand your
business. i'm not going to be hiring more people. >> john: so raise the prices. >> i have so many customers who come in with the exact change for their lunch in their hand, they're very, very price conscious. >> i wonder who are the businesses on the margin? >> there are always some, just not sure, expanding is going to make them a profit. >> so on the basis of that we'll deny 15 million people coverage? >> it's nice to give people coverage, but it does impose costs. goodrich says the costs will force him to cut full-time workers. >> i'll absolutely have to cut many people down to part-time. >> john: and people meant to help, maybe him, maybe her will be hurt. >> they'll have to go get another job and work two jobs to make ends meet, which is sad. >> john: it's an extra burden. you're always adding burden. >> who is we? >> you congressmen, you democratic congressmen, especially. >> i lived in a communist
country while they were still communist, i know what it's like to be in a place where it is a burden. i don't see our country being that way. >> john: we're not yet, but we should learn from history and stop putting more burden on guys like him. >> you need me. i employ your teenagers. some have gone off to run their own businesses because of my training. my business is needed. >> john: coming up, the new celebrity cause, stopping fracking. ♪ please don't frack my mother ♪ ♪ don't frack me, don't frac
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>> myth number five, our drinking water is in danger because oil companies frack. frack? what's that? >> the controversy is over chemicals being injected into the earth to break up rock and release natural gas. >> john: fracking means shoving water and chemicals into the ground, fracturing the rock to release oil and gas. this has been done for 06 years, recently geologists
learned how to drill side ways, result, america has much more and therefore cheaper natural gas and families pay less to heat their homes. soon america may be self-sufficient in energy. also, if you're worried about global warming, burning natural gas releases less greenhouse gas than oil or coal. >> fracking feels wrong. it feels like you're pumping stuff into mother earth. it's an amazing story. >> john: a liberal european environmentalists points out that europe promised to cut its greenhouse gas emission, but didn't cut them much. >> in europe we've only managed to cut half of what you guys accidentally happened to do when you stumbled on fracking. >> john: so fracking brings fuel that's cheaper, plentiful, may be better for the world. so why are these people so mad? >> ban fracking now! >> they worry about energy companies shoving these dangerous chemicals into the
ground. >> this is a scene from an anti-fracking documentary called "gas land", 1, 2, 3, 4-- >> for the documentary feature gas land, josh fox. >> john: hollywood gave gas land's director an emmy and matt damon, destroying the promised land. >> it happened to one of us, it can happen to all of us. >> ♪ gather round, people ♪ >> yoko ono and her son sean founded a group artists against fracking. ♪ please don't frack my mother ♪ ♪ don't frack me, don't fracture me ♪ . >> john: celebs upset. >> and waste water comes up by the millions of gallons. >> and cows, live stock is dying. >> and genetic mutation of our
children. and a lot of people get sick. >> john: you'd think so since the anti-fracking movie includes this frightening scene. >> jesus christ. >> john: so much gas in the water he could light it. >> what you see in gas land is real. >> john: paul runs the group. >> all the people from the company say, oh, this isn't our problem, this was there in the first place but they're lying. >> john: he and the gas land movie say this is much more likely to happen after fracking, but when state environmental officials investigated this incident they concluded fracking had nothing to do with it. it was just gas that's naturally in the ground. that happens. there are many places in america where no fracking is done, but-- >> oh! >> water still catches fire. this is a lake in alaska. this man lives in new york, where fracking is banned,
yet-- >> whoa. >> but if fracking doesn't cause the problems, why the lawsuits and headlines about ruined wells? film maker checked out the pollution claims made by craig and julie soughtner. >> have you done independent test? >> we did maybe two years ago. >> he was oddly vague about the results. >> i can't remember what that showed. >> john: his lawsuit says his well water was dirty and dark. when he checked it wasn't. >> it changes from day-to-day. one day clear and the next day it won't. >> john: they demanded that pennsylvania and environmentalists test the water and the epa did and concluded the water was fine and reported that good news to them. listen to his reaction. >> this bull crap, i'm sick and tired of this. what happened to you people? >> we're telling you we tested your water and at this point in time we found no contaminates. >> john: even president obama's recent epa director
said. >> in no case have we made a definitive determination that the fracking process has caused chemicals to enter ground water. >> now, some companies have spilled chemicals. there is risk. the protesters say, instead of fracking america should use less energy and invest in alternatives. >> and wind, solar, geo thermal. >> and algae, there's more energy in algae than any or source. >> john: no, there isn't. today a renewable energy doesn't provide the world why anywhere near the power we need. if you environmental zealots got your way there would be no progress. oil, natural gas, fuel is dirty. otherwise we're living in the dark ages. >> i hear the zealotry coming from the other side, john. i don't see zealotry coming in i see statistics uncomfortable
for you. >> john: his side won in my state. persuading politicians to stop all fracking in new york. that makes me uncomfortable because the world needs energy where energy is limited. >> life is cruel and life is short. energy matters, we take them for granted. we really shouldn't. >> john: coming up, something else we shouldn't take for ♪ some people will do anything to help eliminatlitter box odor. ♪ discover tidy cats pure nature. clping litter with natural cedar, pine, and corn.
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>> now, myth number four, we're safer because of lawsuits against reckless companies and their dangerous products. that's logical, but what if you want to buy one of these plastic gas cans? >> the largest of manufacturer has just closed up shop. >> john: that was blitz usa in oklahoma. >> nothing's ever made me prouder than to see the way that this team finished this
job. >> john: after 50 years, 117 people lost their jobs. there were lots of tears. >> i've been here 36 years and they were my family. >> my plan is to go home, lay down and cry. >> john: of course, companies disappear all the time. markets change, new products emerge, but this company made something that is in high demand. so what happened? this happened. some people use the gas cans to pour gas on fires, some were burned, some killed, and that's terrible, but is that the gas can's fault? >> oh, my god -- oh my gosh. >> and people being stupid with the cans. >> the lawyers have designed systems that are good for lawyers and bad for our community.
>> john: ah, the lawyers. >> if you or a loved one have been injured in an accident. >> john: if you get hurt it's easy to find lawyers eager to take your case for a percentage of the winnings. >> don't wait, call me today. >> some lawyers put out of business. >> john: lawyer andy smiley didn't sue blitz, but he defend his colleagues who did. >> the device on the gas cans would prevent explosions that have occurring because of the back draft of fumes. >> a flame arrester, inserted into the spout might prevent fire from crawling up into the can and causing an explosion. it might. researchers in worcester polytechnic are testing flame arresters and so far show the flame arresters might make the cans more dangerous, because they clog and because static electricity from metal can start a fire and that's probably why no plastic gas
cans include flame arresters. >> this could cause fires, but for the jury to listen to the evidence and looking for the experts and hear about the research and make a decision. >> but the jurors aren't scientists and they see this poor victim, they just want to help. so they'll award the money. >> of course, they're sympathetic because it's dangerous. >> if they can make this product safer, why don't they? >> because it would cost more and clog and make the product less useful. this could cause a spark, this could cause more danger. there are lots of reasons not to do this, it's a debate, but once you lawyer parasites step in, the debate's over because you cost so much. >> i don't think that's the case. if a company decides to make a product and put it out on the market they're required to do what's reasonable. >> juries are called upon to decide what's reasonable, but are legal systems stacked against companies that make a product that could burn people? some lawyers say that the warning label wasn't clear enough. >> the warnings are not
distinguished at all. >> john: lawyers often win money arguing there should be more warnings. one result even a simple ladder today, includes 30 warnings. do you ever look at a birth control label? >> i haven't. >> john: this is what your lawsuit did. tiny print, both sides of the page, there are so many warnings now, none of us read them. we're less safe because of you awful people. >> that's left to a jury. people that are going to read warnings are generally going to read them. >> john: when blitz was sued, they fought back and won. >> cost us 2.5 million dollars to win it. >> john: 2 million dollars. in our legal system even when you win, you lose. >> it's the lawyers that are winning and everybody else loses. >> john: more lawsuits poured? >> the year before we filed for bankruptcy, we had 25 cases in the last nine months. >> you can sue somebody until they're broke and tired and can't provide jobs and take care of communities and can be an entrepreneur in our society. >> john: even if the cans were dangerous, lawsuits rarely
take into account the danger of not having a product. during hurricane sandy, stores ran out of containers for gasoline. >> it's incredible, we can't keep them in the store. >> and i think they're having a difficult keeping up with the supply of red gas cans. >> store employees didn't know they know longer exist. >> customers were desperate for cans. >> i looked all over brooklyn trying to find a five gallon gas cans. >> and folks are trying to buy buckets, you couldn't do that. >> one man walked in a gas station lugging a five gallon igloo cooler hoping to fill it with gas. they were using milk jugs-- >> to argue the company going out of business, no cans available, resulted in people not getting gas cans during a hurricane, which frankly ridiculous argument. >> john: but it is just a fact that we lose products because
of fear of lawsuits. it's why america has no aids vaccine and no lyme disease vaccine. >> you deprive me of good stuff. >> i disagree with that. >> if they're scared of someone like me to bring something to the market because it could cause harm, then, i'm happy about that. >> john: we paid for his happiness. not just in products we lose, but americans pay almost $1,000 per person per year for lawsuits. and in oklahoma blitz let 117 workers go. >> it's wrong. if they can take this team and destroy it, they can take just about anything. >> john: they can, but there is something that no one seems to be able to take it away and you have to fund them. [ female announcer ] you can make macaroni & cheese without freshly-made pasta. you could also cut corners by making it without 100% real cheddar cheese. but then...it wouldn't be stouffer's mac & cheese.
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>> another myth, government can run the post office like a business. ♪ we deliver, we deliver ♪ >> by the commercials they do, but real businesses can't lose billions every year. 16 billion last year. the post office loses money even though. >> they don't pay sales taxes. they don't pay property taxes, they don't pay parking tickets. >> john: with advantages like that how does the post office lose money? here is a reason. check out this little post office in massachusetts. >> hi. this is one of hundreds on average bring in less than $700 a month. i don't blame her, but a real business would close the store that can't cover even her salary, let alone other costs. never mind now. congress says post offices must serve all of america, but there's another post office a mile down the road. in fact, there are five others within a few miles. why do they need so many so
close to each other? even though locals see the excess. >> they should be cut back to probably a couple. >> they're a bunch of post offices around. >> kind of silly. >> john: closing post offices. >> we're working on it. >> john: what do you mean you're working on it. a business just doesn't-- >> we're expected to operate like a business, but congress hasn't allowed us the flexibility to operate like a business. >> john: the chairman of the post office-- >> on your website you say since ben franklin, the post office has grown and changed with america, but you don't change. you're a government monopoly, you're barely changed. >> 250,000 less, fewer employees than we had. >> you don't fire anybody. >> no. >> john: if government did fire people, the big government media would say things like that. >> they are hell bent on seeing the u.s. postal service die. >> john: so the manager waits for workers to quit or retire. attrition is kinder, that's
why you do it. >> well, we have union contracts and no layoff provisions and so forth. >> john: how can you run a business that way? >> part of being a quasi governmental entity, how the cookie crumbles. your tax dollars crumble. >> fed ex continue to thrive while postal service spend billions. >> john: they could be innovative and cut costs. >> ups. >> john: postal officials like mickey barnett tried to do that, tried to close money losers like these. why weren't they closed long ago? >> political pressure. >> john: congress can kill any major change. close post offices? no way. save billions by adjusting benefit payments? not a chance. so these politicians aren't dumb. what are they thinking? >> they're thinking about reelection. >> john: they can't be so short-sighted can they? they're supposed to be responsible. >> are we so dumb we need to need to keep losing taxpayer money? >> the post office could
charge anything it wanted, it probably would operate at a very-- not necessarily, i think-- >> why they say they can't run it like a business. >> well, okay. >> john: they have to beg you for permission and kiss your ring every time they want to do something. >> the post office provides something extremely valuable and has to be maintained and that's universal service, that costs something. >> john: universal service means that every american must get mail service, whether you live in the suburbs or deep in the heart of alaska and they even haul mail by mule to the bottom of the grand canyon and senator franken says-- >> it's in the constitution. >> john: but it isn't. the constitution says congress has the power to establish post offices. it doesn't have to and it doesn't have to deliver mail to all of america. >> people living in rural america aren't living there by force. you go back to the history it was private carriers that picked up the mail from the post office and took it to the last mile or else people came
out to the post office and picked it up. what we have today is invention of congress. >> john: who says there needs to be universal service? if i live way out in the boondocks i could get e-mail. >> there are countries a lot poorer than the united states, including the kongo that try to provide universal mail service to everybody. >> john: and if they lose money, they go out of business. in your government, i have to pay forever. >> i don't represent john stossel in congress. overwhelmingly people don't want post offices to close. they he don't want a cut in saturday delivery. >> john: overwhelmingly, they're short-sighted and want free stuff for themselves. as the grown up, you can't have it all. >> i don't feel a moral compulsion to shut down post offices when they don't want them shut down. the public disagrees with you. >> john: they do. most people don't want their post office closed. >> not this one. it seems like too much, but they're convenient.
>> no, there are a couple that i don't understand why they're still open, but this one would definitely have to be. >> john: next, what you don't know about trains and mass transit. ♪ [ male announcer ] why do more emergency workers everywhere trust duracell...?? duralock power preserve. locks in power for up to 10 years in storage. now...guaranteed. duracell with duralock. trusted everywhere. only rzr delivers. now's the time to buy during the polaris xp sales event. take your pick of our new limited edition rzrs and get financing as low as 2.99%. save even more with rebates up to $500... or totally customize your new rzr
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>> now, myth number two, we need government to invest in infrastructure. that does make sense. we do need ways of getting places faster and building infrastructure does create jobs. >> let's get moving. >> john: these days politicians want to spend more on trains. >> there are 220 mile an hour train that would take us from l.a. to san fran in two hours and 40 minutes. >> cool, except it's only a promise. at train line that starts and ends in the boondocks where congressman adrian moore lives. >> i live in a little mountain town in the middle of nowhere, 50 miles to the nearest wal-mart and the high speed rail line in california comes right through my town. this thing is like the boondoggle of boondoggles. >> and lots of people live in california, they're starting
high speed rail in the middle of the state because that's where you can build it fast. we envision high speed rail connecting san francisco, san diego. >> john: that will cost another 100 billion dollars. you're expecting private investors, private investors will be a part of the mix. have any come forward? >> not at this time, but there's every reason to believe that they will. >> the private money was always a joke because private money will invest in something where they can make a profit. there's no way this project is ever going to pay for itself. >> john: why does it happen? >> because it's visionary, john, very, very visionary. >> trains will ref revoluti revolutionize our infrastructure. >> john: trains are romantic. and like the amtrak trains. >> the amtrak trains are packed. >> john: they're packed? here is what it looked like recently when we taped. on average, amtrak's california train's filled just a third of their seats, but if
we don't invest in trains, what's the mass transit alternative? new buses. this is now the fastest growing mass transit in america. why? >> because it's cheaper. >> john: buses don't get the big subsidies, but they're cheaper than trains. >> to get to delaware, i'll take that. >> amtrak is too expensive. >> i don't have $200 to spend. >> john: more typically an amtrak ticket from new york to d.c. costs about $150. and a bus ticket just 20. >> it's cheap. that's basically it. >> john: also, today's buses are pleasant. they have extras like wi-fi and most important, a bus can go where the people go. trains run in straight lines, but people move every which way. only cars and buses can change routes to follow them. they're making money and doing a better job? >> yes, and growing because they're more flexible. >> john: which raises the
question, why should taxpayers lose more money on trains? people cite new york subways as a reason the government must provide infrastructure. yes, these lose money, but it's worth it. they transport lots of us. >> what would happen in new york if we waited for private investors to build the subway? >> it would have never happened. private investors can't do it because it's a public good they can't profit from. >> john: it makes sense and if you ask people who built the subways? >> i think it was the government. >> either president eisenhower or maybe like a mayor. >> union workers. >> john: but actually. >> 1878 before the brooklyn bridge, before the statue of liberty. >> john: the original subways in new york were all private. >> it carried tens of millions of passengers. >> john: then after 50 years, the private companies tried to raise the fare to a dime. >> people didn't like paying a higher fare and the mayor took advantage of that, fine, if the government will take it over and we won't raise the fare.
>> john: but of course, government did. and now, the fare is $2.50 and now the government builds subways, construction takes longer. this subway was supposed to be done in 1938. then he they said, 1980. now they say 2018. it's taken so long, that the subway cars built for it, which cost a million dollars each now won't be used because they know longer fit the track and we no longer need the ultraviolet lights they have to kill polio germs. so private companies did it faster 150 years ago. without this modern equipment. why? because they had competition and their own money on the line. >> i want to recognize upfront a number of official-- elected officials. >> john: politicians have different senses, like sucking up to other politicians. >> counsel member jessica--
>> and government workers have time to stand around. yet, despite the delays, despite the billions lost, government wants more trains. >> it's rail, rail, rail and rail. >> john: up next, do you like these beautiful homes? >> you should, you probably helped pay for them. ♪ looking for a litter with natural ingredients that helps neutralize odors. discover tidy cats pure nature. uniquely formulated with cedar, pine, and corn. for the things you can't wash, freshen them with febreze. febreze eliminates odors and leaves a light, fresh scent. febreze, breathe happy.
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>> finally, our top myth. people say, i'm going to washington to serve my fellow american. they call it public service, but that's not what i notice when i look at how they live. >> upon first entering the home, you have this incredibly gracious staircase. >> john: washington's real estate market is hot. >> you can really see the crown molding when you get to the top. >> john: there are lots of expensive homes here. >> beautiful gourmet kitchen. culinary delight. >> john: all glass walls, ceilings, sky lit. this is a steal at 2.8 million dollars. >> john: 2.8 million is a steal he says. >> because our real estate market has been relatively recession proof. >> john: why is that? >> because government is its main industry. we continue to have one of the lowest unemployment rates in the country. >> john: because government keeps growing. so much so that today for the first time, most of the richest counties in america
surround washington d.c. the rest of america had a housing recession. >> everybody else housing prices went way down, not in washington. >> historian says that the d.c. is special because the people who control the government and get to tax you live here. >> they move there and they like it there. >> lobbyists, politicians, government contractors. >> there's a reason they go this and stay there. >> consider where they work. the architecture is great and many resemble the houses. >> and the french revolution, french noebbility spent their time in versailles. >> and a congressman lost his seat and ran again and won. grayson if there is royalty in america-- >> it's not the congressmen, it's the lobbyists, the lobbyists are the royalty of d.c. and who made it that way.
>> john: you congressmen made it bypassing all of these laws. >> and the bill is passed. >> john: if you have big government there's more money to fight over. >> there is that argument, but i'll tell you the real royalty is not in washington d.c. >> it's on wall street he says and there is lots of money here, but there's a big difference. >> in the private sector, if you can find a way to cut costs you're a herhero. if you find a way to cut bureaucracy you're a goat. they base success by the size of the budgets. >> john: right, if budgets give special interests a reason to invest in d.c. and invest they have. unions say teachers are underpaid, but their union sure looks rich. this is their headquarters building. >> we're told it's worth $100 million dollars. its atrium is called an environmental oasis, it's certainly impressive, but they didn't want us to take pictures of it. >> we can't just take a picture of the beautiful atrium? they told me to wait o